India $5 Trillion Economy


Budget 2021: Increase in agriculture credit target to Rs 40,000 crore

Nirmala Sitharaman proposed to increase the agriculture credit target to Rs 16.5 lakh crore.

Presenting the Budget for 2021-21 amid the ongoing farmers’ protest, Finance Minister Nirmala Sitharaman said that provision to rural infra development fund would be increased to Rs 40,000 crore from Rs 30,000 crore. Additionally, five major fishing harbors to be developed as hubs for economic activity.

Micro-irrigation corpus will also be doubled to Rs 10,000 crore, FM Sitharaman announced. She also proposed to increase the agriculture credit target to Rs 16.5 lakh crore.

“The MSP regime has undergone a change to assure a price that is at least 1.5 times the cost of production across all commodities. The total amount paid to paddy farmers surged to Rs 1.72 lakh crore in 2020-21,” she said.

“MSP has gone through a sea change. Over Rs 75,000 crore paid to wheat farmers in 2020-21, 43.36 lakh benefited from this,” she added.

She further said that so far, in the case of wheat, the amount paid to farmers in 2019-2020 was Rs 62,802 crore and it was further increased in 2020-2021 to Rs 75,060 crore.

Meanwhile, the BSE benchmark Sensex surged over 443 points and the NSE Nifty advanced 115 points in opening trade, ahead of the Union Budget 2021-22 presentation in Parliament.

The 30-share Sensex was trading higher by 443.06 points or 0.96 percent at 46,728.83, and the broader Nifty was up 114.85 points or 0.84 percent at 13,749.45.

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